Zydus Wellness arm will get Rs 56.33 crore GST demand

NEW DELHI: Zydus Wellness Ltd on Saturday mentioned its wholly-owned arm has obtained a GST demand of Rs 56.33 crore, together with relevant curiosity and penalty from the tax authority. Zydus Wellness Merchandise Ltd (ZWPL), a wholly-owned subsidiary firm, has obtained an intimation from the Directorate Basic of Items and Providers Tax Intelligence, Surat Zonal Unit, alleging GST demand of Rs 56.33 crore, together with relevant curiosity and penalty, Zydus Wellness Ltd mentioned in a regulatory submitting.
The intimation alleges that the GST was payable in relation to the acquisition of mental property rights from Heinz Italia S.P.A. by Heinz India Pvt Ltd, now merged with ZWPL, it added.
“ZWPL believes that there’s a robust benefit within the case, and ZWPL is evaluating the following steps primarily based on an in depth assessment of the intimation,” the submitting mentioned.
The interval coated by the order pertains to the pre-acquisition interval previous to January 30, 2019, the submitting mentioned.
Resulting from this order, there isn’t any impression on monetary, operation or different actions of the corporate/ZWPL, it added.
The impression will likely be restricted to the ultimate tax legal responsibility as could also be ascertained, together with curiosity and penalty, if any and is eligible for indemnification by Heinz Italia S.P.A., the corporate mentioned.